If you are struggling under the weight of gambling debt, you are most likely suffering alone. Many people don’t understand gambling debt is dischargeable in Chapter 7 and Chapter 13 bankruptcy in Littleton, Aurora, and Centennial. This misconception usually stems from people’s belief that gambling debts are more “immoral” than other debt, and therefore the bankruptcy code would not allow them to be discharged. This is not true. In fact, Bankruptcy code section 523 (which lists the exceptions to discharge), doesn’t say anything about gambling debt’s exception from discharge. As an experienced bankruptcy lawyer in the Denver area, I have helped many people overcome the financial trouble they find themselves in because of gambling debt.
Two Types of Gambling Debts:
There are two main types of gambling debts:
- Cash advances
- Casino markers
Credit card cash advances are made using ATM withdrawals, or by cashing convenience checks and using the money to gamble at the nearby Blackhawk and Central City casinos. Casino markers come in two different types: A debtor’s check (usually post-dated) or a counter-check, which is used as security, and a casino line of credit.
Gambling Debt and Bankruptcy: Potential Issues
If your gambling debt comes from credit cards, there can be some problems with their discharge in bankruptcy. Two potential issues would be from fraud, or the 90 day presumption period. Because gambling is considered to be a luxury expense, any credit card debt related to gambling of $500 or more within 90 days of filing for bankruptcy is considered to be fraudulent. Once the 90 day period is over, however, the creditor would need to prove actual fraud. The presumption period and fraud are also issues with casino marker gambling debt. The bankruptcy code is complex, and each circumstance is unique, so if you have credit card debt related to gambling, it is wise to consult an experienced bankruptcy lawyer to discuss your options.
Bankruptcy Lawyer for Discharging Gambling Debt in Bankruptcy
If you are struggling with gambling debt, and you are unable to pay your bills, don’t hesitate to contact me for a free consultation. I have been a bankruptcy lawyer for almost three decades, and have helped countless families achieve financial freedom through bankruptcy. Gambling debt can destroy your future and keep you from accomplishing what you want in life. Come in for a free consultation, and I’ll discuss the options bankruptcy can provide and give you a plan for your future.
If you are overwhelmed by gambling debts, contact experienced bankruptcy lawyer Barry Arrington. He has helped countless families in Greenwood Village, Lone Tree, and Parker gain financial freedom through Chapter 7 and Chapter 13 bankruptcy. Contact him for a free consultation at 303-205-7870, or submit the “Get Bankruptcy Help Now” form.